5. Adidas Limited, a recently framed organization, has applied to a business bank interestingly for financing its functioning capital prerequisites. The accompanying data is accessible about the projections for the current year:

Assessed level of action: 1,04,000 finished units of creation in addition to 4,985 units of work-in-progress. In light of the above action, assessed cost per unit is:

Crude material $78.85 for every unit

Direct wages $87.98 for every unit

Overheads (select of deterioration) $65.78 for each unit

All out cost $174.25 for every unit

Selling cost $451.25 for every unit

Crude materials in stock: Average a month utilization, work-in-progress

(expect half fulfillment stage in regard of change cost) (materials given toward the beginning of the preparing).

Completed products in stock 8,874 units

Credit permitted by providers Average a month

Credit permitted to borrowers/receivables Average two months

Slack in installment of wages Average 1.5 weeks

Money at banks (for smooth activity) is required to be $25,854.58. Expect that creation is continued uniformly all through the year (52 weeks) furthermore, wages and overheads build correspondingly. All deals are using a credit card premise as it were.

You are needed to CALCULATE the net working capital required.

2. Which blend is by and large useful for firms

(a) High OL, High FL

(b) Low OL, Low FL,

(c) High OL, Low FL,

(d) None of these

3. Joined influence can be utilized to quantify the connection between:

(a) EBIT and EPS,

(b) PAT and EPS,

(c) Sales and EPS,

(d) Sales and EBIT

4. FL is zero if:

(a) EBIT = Interest,

(b) EBIT = Zero,

(c) EBIT = Fixed Cost,

(d) EBIT = Pref. Profit

5. Business hazard can be estimated by:

(a) Financial influence,

(b) Operating influence,

(c) Combined influence,

(d) None of the abovementioned

6. Monetary Leverage estimates connection between

(a) EBIT and PBT,

(b) EBIT and EPS,

(c) Sales and PBT,

(d) Sales and EPS

7. Utilization of Preference Share Capital in Capital design

(a) Increases OL,

(b) Increases FL,

(c) Decreases OL,

(d) Decreases FL

8. Connection between change in deals and change m is estimated by:

(a) Financial influence,

(b) Combined influence

(c) Operating influence,

(d) None of the abovementioned

9. Working influence works when:

(a) Sales Increases,

(b) Sales Decreases,

(c) Both (a) and (b),

(d) None of (a) and (b)

10. Which of coming up next is right?

(a) CL= OL + FL,

(b) CL=OL-FL,

(c) OL= OL FL,

(d) OL=OLFL